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Telenor ASA ADR TELNY

Morningstar Rating
$11.58 −0.08 (0.69%)
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Company Report

Telenor Earnings: Guidance Fractionally Raised; Maintain Fair Value Estimate

Narrow-moat Telenor reported service revenue of NOK 16.3 billion, which represents a 4.5% organic increase year over year. The increase in service revenue continues to be driven by mobile service revenue growth on the back of increasing average revenue per user in all Nordic markets except Finland. In Finland, the improvement came from an increase in the subscriber base. These results support our belief that Telenor can gradually increase prices without losing significant market share, especially in Norway, where it is the incumbent with a very high market share. In Asia, organic service revenue increased by 6.4%, primarily attributed to the continued positive development in data usage and data users in Grameenphone, Telenor's Bangladesh business, and growth in average revenue per user in Pakistan. For the group, first-half 2024 organic service revenue increased 5.1%. Group EBITDA was NOK 8.8 billion, up 3.8% year over year on an organic basis. Management took the opportunity to raise its 2024 organic revenue guidance from a low single digit to low- to mid-single digit, but maintained its goal of mid-single-digit EBITDA growth. We continue to believe Telenor is well positioned to reach these ambitions and make no changes to our estimates. We maintain our NOK 130 fair value estimate.

Price vs Fair Value

TELNY is trading at a 653% premium.
Price
$11.66
Fair Value
$47.00
Uncertainty
High
1-Star Price
$63.80
5-Star Price
$8.30
Economic Moat
Tffmzp
Capital Allocation
Xcbrcns

Bulls Say, Bears Say

Bulls

Norway provides Telenor with steady free cash flow, which allows the firm to invest in higher-risk but faster-growing emerging markets, particularly Asia.

Bears

Telecom regulators can encourage increased market competition to the detriment of the established players like Telenor.

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News

Trading Information

Previous Close Price
$11.66
Day Range
$11.4911.61
52-Week Range
$10.0112.23
Bid/Ask
$11.33 / $11.72
Market Cap
$15.84 Bil
Volume/Avg
11,361 / 21,469

Key Statistics

Price/Earnings (Normalized)
12.13
Price/Sales
2.14
Dividend Yield (Trailing)
7.38%
Dividend Yield (Forward)
7.38%
Total Yield
8.52%

Company Profile

Telenor is an international provider of telecom, data, and media communication services. It is the incumbent dominant telecom operator in Norway and the Norwegian government holds a stake of more than 50% in the firm. Telenor also operates in other Nordic countries and owns several businesses in Asia. Most of Telenor's operations are mobile businesses, although it also has some fixed-line operations in Nordic European countries.
Sector
Communication Services
Industry
Telecom Services
Stock Style Box
Large Value
Total Number of Employees
11,000

Competitors

Valuation

Metric
TELNY
TEL2 B
TELIA
Price/Earnings (Normalized)
12.1318.2721.39
Price/Book Value
2.743.692.31
Price/Sales
2.142.521.38
Price/Cash Flow
5.687.324.93
Price/Earnings
TELNY
TEL2 B
TELIA

Financial Strength

Metric
TELNY
TEL2 B
TELIA
Quick Ratio
0.550.460.73
Current Ratio
0.580.520.83
Interest Coverage
5.334.761.49
Quick Ratio
TELNY
TEL2 B
TELIA

Profitability

Metric
TELNY
TEL2 B
TELIA
Return on Assets (Normalized)
4.49%5.82%0.45%
Return on Equity (Normalized)
14.27%17.85%1.77%
Return on Invested Capital (Normalized)
6.58%8.81%3.00%
Return on Assets
TELNY
TEL2 B
TELIA
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